RECORDED AND VERIFIED REBECCA P. TUCKER REGISTER OF DEEDS, THE STATE OF NORTH CAROLINE HANOVER CO. NC COUNTY OF NEW HANOVER JU 144in PH '87 90 BOOK PAGE 1383 0201 DECLARATION OF CONDOMINIUM COLUMBIA TERRACE JAMES MOTHERSHED as Trustee for the JAMES THOMAS MOTHERSHED, JR., D.P.M.
, P.A. PENSION PLAN ACCOUNT M, hereinafter called "DECLARANT", being the owner in ree simple of the property hereinafter described, hereby submits said property to condominium ownership pursuant to Chapter 47C of the General Statutes of North Carolina as amended, known Carolina Condominium Act", and to that end does hereby publish and declare as the "North that all of the said property to be known as "COLUMBIA TERRACE" is and shall be held, conveyed, hypothecated, encumbered, used, occupied, and improved subject to the following conditions, covenants, uses, limitations and objections, all of which shall be deemed to run with restrictions, the land and shall be a burden and benefit to Declarant, their successors and assigns, and any person acquiring or owning an interest property and improvements, their grantees, successors, heirs, executors, administrators, devisees and assigns.
1.
in the DEFINITIONS. Unless it is plainly evident from the different meaning is intended, as used herein: context that a provisions the statutory set forth in Chapter 47 C of the North Statutes, the North Carolina Condominium Act, under which the condominium Carolina General is established.
B. "Assessment" means a share of the funds required for the payment of common expenses which from time to time is assessed against the unit owner by the Association.
the condominium pursuant
he payment of common expenses which from time to time is assessed against the unit owner by the Association.
the condominium pursuant to the Act, which entity includes all of the unit owners acting as a group in accordance with the By-Laws and Declaration.
D.
"Board of Directors" or "Board" means the Board of Directors of the Association , and "Director" means a member of the Board.
E. "By-Laws" means the By-Laws for the government of the condominium as they exist from time to time. A copy of the initial By-Laws are hereto attached as Exhibit "E" and made a part hereof by reference.
F. "Building" or "Buildings" shall Mean all structures improvements now or hereafter erected upon the property.
and portion of the condominium property owned, in undivided interest, by all of the owners, as more specifically set forth herein in Paragraph 5.
H.
maintenance, a administration, capital area and common "Common Expenses⭑ include the expenses of operation, repair and replacement (including for repair maintenance and replacement), of the common facilities , and other expenses declared by the Association to be expenses, as further defined in the Act.
reserve I. "Содвод Profits" Beans the balance of all Association remaining after deduction of common expenses.
revenue of the J. "Condominium" means real estate, portions of which are designated for separate ownership and the remainder of which is designated for com■ON ownership solely by the owners of those portions.
condominium Real estate is not undivided interests in the vested in the unit owners.
common elements are K.
unless the a "Condominium Documents" means this Declaration, the By-Laws, the 103855 Book PAGE 1383 0202
Real estate is not undivided interests in the vested in the unit owners.
common elements are K.
unless the a "Condominium Documents" means this Declaration, the By-Laws, the 103855 Book PAGE 1383 0202 Rules and Regulations and all other Exhibits attached hereto and all other documents and regulations promulgated pursuant to the authority created herein and in the Act, and as such documents shall be amended from time to time.
L. "Declarant* means JAMES MOTHERSHED as Trustee for the THOMAS MOTHERSHED, JR., D.P.M., P.A. PENSION PLAN ACCOUNT M, their heirs, JAMES successors, and assigns.
M. "Declaration" means this instrument as it time amended or supplemented.
may be from time to of rights estate to a common elements into common reserved by a declarant in the declaration to add real condominium; to create units, common elements, or limited within a condominium; to subdivide units or convert units elements; or to withdraw real estate from a condominium.
as a 0. "Eligible Mortgage Holder" or "Eligible Holders" is defined holder of a first mortgage or lien on a unit who has requested notice of certain matters from the Association.
P.
"Limited Common Areas and Facilities" means and includes those common areas and facilities which are reserved for the use of unit a certain units, to the exclusion of other units, as поге defined herein.
specifically Q.
Trust.
R.
or "Mortgagee" shall mean a beneficiary under a mortgage or Deed of "Plans" shall mean and refer to the plans and specifications of the condominium prepared by DON SEAMAN, Registered Architect, recorded under the name of the condominiums in the Unit Ownership file in Office of the Register of Deeds of New Hanover County, in Condominium Plat the Book 8 at Pages 75
EAMAN, Registered Architect, recorded under the name of the condominiums in the Unit Ownership file in Office of the Register of Deeds of New Hanover County, in Condominium Plat the Book 8 at Pages 75 through 77 and attached hereto as Exhibit sheets 1 through 5 and incorporated herein by reference.
"B", S. "Property" means and includes the land described in Article 2 of this Declaration together with any buildings and thereon.
improvements located T. *Special declarant rights" means rights reserved for the benefit of a declarant to complete improvements indicated on plats and plans filed with the declaration (Section 47C-2-109); to exercise right (Section 47C-2-110); to maintain any development sales offices, management offices, signs advertising the condominium, and models (Section 47C-2-115); to use easements through the common elements for the purpose of improvements within making the condominium or within real estate which may be added to the condominium (Section 47C-2-116); to make the condominium part of a larger condominium (Section 47C-2-121); or to appoint or remove any officer of the association or any executive board member during any period of declarant control ( Section 47C-3-103(d)).
U.
is to be subject to private ownership, as designated on the attached to this Declaration and as further defined in the Act.
Exhibits combination thereof, who owns a unit.
2.
entity, or any DESCRIPTION OF PROPERTY. All of that certain tract or parcel of land with the building and improvement thereon erected, or to be situate, lying and being in the Town of Wrightsville Beach, New Hanover erected, County, State
. All of that certain tract or parcel of land with the building and improvement thereon erected, or to be situate, lying and being in the Town of Wrightsville Beach, New Hanover erected, County, State of North Carolina, and being more particularly described in Exhibit "A" attached hereto and incorporated by reference hereby as though fully incorporated herein.
' BOOK PAGE 1383 0203 3. DESCRIPTION OF BUILDING. The Declarant has constructed, or will construct, upon the property described in Exhibit "A" attached hereto, one (1) three (3) unit building to be used for residential and accommodation lodging purposes as herein provided. A plat or survey of the property showing the location of said buildings is attached made hereto and a part hereof as Exhibit "B". The buildings are more particularly described in the plans thereof, a copy of which plans are attached hereto as Exhibit "B" and made a part of hereof, showing all particulars of the buildings as required by law.
In general, the building has three stories built on wooden pilings with parking area beneath, and is constructed primarily of wood frame on treated timber piles. The building contains three units, Unit A with approximately 780 square feet, with a kitchen, 3 bedrooms, 1 bathroom and living room; Unit B contains approximately 750 kitchen, 2 bedrooms, 1 square feet, with a 1/2 bathrooms and a living rooa; Unit C contains approximately 1225 square feet, with a kitchen, 4 bedrooms, 2 and a living/dining room.
bathrooms a In addition, the building will have walkways, stairs, parking and other appurtenances.
4.
UNIT DESIGNATION AND DESCRIPTION.
area, A. DESIGNATION. The unit designation of each unit, its location and dimensions , is set forth in Exhibit "B" hereto attached and made hereof.
appurtenances.
4.
UNIT DESIGNATION AND DESCRIPTION.
area, A. DESIGNATION. The unit designation of each unit, its location and dimensions , is set forth in Exhibit "B" hereto attached and made hereof.
Each unit is identified with a letter, A, B, or C, designation.
a part B. DESCRIPTION. The legal description of each unit shall consist of a letter, A,B or C, which identifies such unit as shown on the plat hereto attached as Exhibit "B". Each unit is bounded both as to horizontal and vertical ceilings walls, and floors which are shown on said plans, subject to such encroachments as are contained in the buildings, whether the same now exist or may be caused or created by construction, settlement or movement of the buildings, or by permissible repairs, construction or alteration.
boundaries by the interior surface of its perimeter Each unit shall be conveyed and treated as an individual property capable of independent use and fee simple ownership, and the unit owner of each unit shall also own, as an appurtenance to the ownership of each said unit conveyed, an undivided interest in the common areas and facilities.
The percentage of undivided interest in the common areas and facilities appurtenant to each unit shall be as set forth in Exhibit "C" attached hereto and made a part hereof. The percentage of undivided interest in the common areas and facilities that is appurtenant to each unit has been determined by a ratio formulated upon the approximate relation that the square footage interior floor area of each unit at the date of the Declaration bears to the then aggregate square footage area of all the units having an interest in the common areas and facilities. Except as provided in Paragraph 26 below, the percentage of undivided interest in
ears to the then aggregate square footage area of all the units having an interest in the common areas and facilities. Except as provided in Paragraph 26 below, the percentage of undivided interest in the common areas and facilities assigned to each unit shall not be changed without the unanimous consent of the owners of all the units.
5.
COMMON AREAS AND FACILITIES.
A. The common areas and facilities generally shall mean and refer to all of the real property, described in Article 2, and all of the improvements and facilities thereon which are not units, as herein above defined, and which are not items of personal property owned, held and maintained by unit owners. Without in any way limiting the generality of the foregoing , the common areas shall include, but not be limited to, the following: (1) All of the real property поге particularly described in Article 2 of this Declaration.
BOOK PAGE 1383 0204 (2) All foundations, columns, girders, beams, supports, roofs, ventilation fans and vents, load bearing walls, including all exterior walls and all interior walls (except non-load bearing partition walls wholly within a unit) of the buildings.
(3) All stairways, stairwells and stairs and their components, if any, which give access to more than one unit.
(4) All yard and garden areas, parking and drive areas, sidewalks, and any other amenities.
and not (5) All installations of and facilities, apparatus, conduits, equipment for the provisions of all utility services, including, but limited to, all water and sewer services, electricity, heating, air conditioning, telephone, irrigation, trash disposal, if any, and cable TV, if any , supplied for the common use and convenience of the unit owners, and which are not defined as part of the units, herein below.
ing, telephone, irrigation, trash disposal, if any, and cable TV, if any , supplied for the common use and convenience of the unit owners, and which are not defined as part of the units, herein below.
(6) All other portions of the real property and the improvements thereon which are not specifically part of the units themselves, as hereinabove defined, or owned by unit owners as personal property, shall common areas and facilities intended for the common and necessary or convenient use and enjoyment, existence, maintenance or condominium project.
safety of the be areas B. (1) The undivided share in the common elements or common which are appurtenant to a unit shall not be separated therefrom and shall pass with the title to the unit, whether or not separately described.
(2) A share in the common areas appurtenant to a unit cannot be conveyed or encumbered except together with the unit.
(3) The shares in the common areas appurtenant to units shall remain undivided, and no action for partition of the common elements shall lie.
C. The undivided interest of each unit owner in such common areas and facilities is set forth in Exhibit "C" and is attached hereto and made a part hereof.
6. LIMITED COMMON AREAS AND FACILITIES. The limited common areas and facilities appurtenant to each unit are as follows: A. Decks accessible only from a particular unit, outside stairways serving any less than all units, and any outside entry serving less than all units. Each limited common area is allocated to the unit, or units, served by that limited Common area, and as may be shown on Exhibit "B" attached hereto.
B. All non-load bearing walls located entirely within the unit.
C. All materials, including but not limited to, studs, sheet-rock,
ited Common area, and as may be shown on Exhibit "B" attached hereto.
B. All non-load bearing walls located entirely within the unit.
C. All materials, including but not limited to, studs, sheet-rock, plywood, carpet, paint, paneling, tile, vinyl or brick, attached to, or on the inside surfaces of perimeter walls, floors and ceilings of the unit.
D. All doors, windows, screens, ventilation fans and vents located entirely within the unit or extending into the unit from the perimeter walls, floors or ceilings thereof.
B.
All air handling units, ducts and components and all water, power, telephone, television and cable television, electricity, plumbing, gas and sewage lines located in the unit; provided, however, that the portion of said lines located in a common compartment for, or installation of, such lines shall be general common areas and facilities as described above.
F. The limited common areas and facilities which are appurtenant to BOOK PAGE 1383 0205 any unit(s) shall not be separated therefrom and shall pass with title to any unit(s), whether or not separately described.
7. USE.
residential The buildings and each of the units shall be used for and lodging accommodation purposes, which rental of any units by the owner(s) thereof for residential and lodging shall include the accommodations pursuant to rules and regulations Association established and by the other uses reasonably incidental meetings and by persons owning or occupying such units. Each unit owner thereto, including shall have the right to use the common areas and facilities in accordance with the purposes for which they are intended and for all incident to the use and occupancy of his or her unit and such right shall purposes be appurtenant to and run with his or her unit; provided, however, that no
es for which they are intended and for all incident to the use and occupancy of his or her unit and such right shall purposes be appurtenant to and run with his or her unit; provided, however, that no person shall use the common areas and facilities or such any part thereof in manner as to interfere with or restrict or impair the use thereof by others entitled to the use thereof or in any manner contrary to or not in accordance with this Declaration, the By-Laws, and such Rules Regulations as may be established from time to time by the Directors.
Board The uses contemplated by this paragraph amended cannot be changed, or modified without the written consent of the units. So long as the Declarant shall retain ownership of any units, it may it may utilize any such unit or units for sales or rental offices, models or other usage for the purpose of selling or renting units within said project. The Declarant may assign this limited commercial usage right to any other person or entities as it may choose; provided, however, that when all units have been sold, this right of commercial Declarant, its successors and assigns shall immediately cease.
usage by the and of owners of all The Declarant reserves the right to maintain a sales office, management office and/or model in units or on common elements in condominium .
the The use by Declarant as such shall not be a violation of the use restrictions contained in the declaration, rules and other condominium documents.
regulations or Declarant reserves the unsold right to use unit for such any purposes as its sole discretion, and to locate, or relocate, the units at will.
8. PROCESS AGENT. James T. Mothershed, 3057 Trenwest Drive, Winston Salem, Guilford County, North Carolina 27103, is hereby designated as the person to receive
locate, or relocate, the units at will.
8. PROCESS AGENT. James T. Mothershed, 3057 Trenwest Drive, Winston Salem, Guilford County, North Carolina 27103, is hereby designated as the person to receive service of process in any action provided for in Act. The Board of Directors may change the process Declaration of Change in the Office of the Register of Hanover County.
9. MAINTENANCE.
the agent by filing a Deeds of New A. All plumbing, air conditioning, floor and wall covering, heating, electrical , telephone, cabinets, partition walls, suspended other fixtures and equipment located within the unit, and all windows or ceilings and doors opening into the unit, shall be maintained (and, if owner desires, insured by the owner. Any replacement or substitution of such fixtures and equipment shall be compatible with any common areas and facilities effected thereby.
The Association shall not be responsible for repairing, maintaining, or insuring such fixtures and equipment.
B. Maintenance, replacement, and operational costs of any common area and/ or equipment or facilities used jointly by all units will be a COMMON expense of the homeowners, and will be owned by, and assessed by, those заве percentages set out in Exhibit "C" attached hereto and incorporated herein by reference.
be C. All parts of a condominium unit shall be kept in good condition and repair by and at the expense of the owner. The unit shall maintained by the owner in a clean and safe condition, free of nuisance.
Each unit owner will promptly comply with insurance facilities underwriters of the when so requested in insurance for writing by the any the and requirements of the common areas or its designated Board BOOK PAGE 1383 0206 agent. Any failure of an owner to repair, maintain
ers of the when so requested in insurance for writing by the any the and requirements of the common areas or its designated Board BOOK PAGE 1383 0206 agent. Any failure of an owner to repair, maintain required pursuant to the Condominium Documents or a determination by the or replace as may be Board ог its designated agent that such failure will endanger or impair the value of the common areas and facilities or any unit, or the limited common areas and facilities belonging to another written notice owner, may to the be, upon owner of the nature of the maintenance or replacement, repaired or replaced by the Association at the required repair, expense of the unit owner , to be collected provided herein and in the By-Laws. Such assessment may include the cost by special assessment as to the Association incurred in the abatement of any nuisance maintained by the unit owner therein.
10. BASEMENTS.
A. Each unit owner shall have an easement in common with the other owners of all other units to use all conduits, public utility lines pipes, wires, ducts, cables, and other common other units and located in such unit. The Association shall have the right facilities serving such to be exercised by the Board of Directors unit from time to time at reasonable hours or its agents, to enter each operation of the may be necessary for the condominium to inspect the therefrom заве, to violation maintain, repair or replace the any, contained therein or elsewhere in the building.
common facilities, if and to as remove B. Each unit and all common areas and facilities and limited common areas and facilities are hereby subject to an maintenance, easement for the repair, removal, relocation expansion, reduction, inspection, or
unit and all common areas and facilities and limited common areas and facilities are hereby subject to an maintenance, easement for the repair, removal, relocation expansion, reduction, inspection, or other service of or to all gas, electricity, television, telephone, water, plumbing, sewer, utility, drainage or other lines and facilities, whether or not the cause of any or all of those activities or other common areas originates in the unit in which the work must be performed.
may C. Easements are hereby declared hereafter declare, and granted, and the Board grant or assume easements for utility purposes for the benefit of the property , including the right to install, lay, maintain, repair and replace water lines , pipes, sewer lines, gas mains, telephone and television wires and equipment and electrical conduits, and over, under, along and wires on any portion of the common areas; each unit owner hereby grants to the Board , or its designee, an attorney to execute, acknowledge, and record, for and in the name of the irrevocable power of Association or each unit owner such instruments as effectuate the foregoing.
may be necessary to common areas D. In the event that by reason of the construction, reconstruction, settlement or shifting of the building, any portion of the and facilities encroaches upon any unit, or any unit encroaches upon any other unit, or any unit encroaches upon the common (whether the areas and facilities, same now exists or May be caused construction, settlement or created by existing or movement of the buildings, or by permissible repairs, construction or alteration ), valid cross-easements maintenance of such encroachment for the for the benefit of such unit or common elements so encroaching so long as are hereby established and shall exist
ruction or alteration ), valid cross-easements maintenance of such encroachment for the for the benefit of such unit or common elements so encroaching so long as are hereby established and shall exist all or any part of the building containing such unit or common elements so encroaching shall remain standing, provided, shall however, that in a valid easement for any encroachment be created по event owner of any unit or in favor of the owners of the common elements if such in favor of the encroachment occurred due to the willful conduct of said owner or owners.
8.
through time to time vehicular traffic pedestrian traffic over, as the same from and facilities; and, for portions of the common Ingress and egress is reserved for and across sidewalks, paths, walks, and lanes Bay exist upon the common areas over, through and across such areas and facilities as from time to time may be paved and intended for such purposes, for all unit owners or units in COLUMBIA TERRACE, their guests, families, invitees, lessees, the Association, the successors and assigns.
Declarant, its w F.
BOOK PAGE 1383 0207 In case of any emergency originating in or threatening any unit or the common areas and facilities, regardless whether the unit owner is present at the time of such emergency, the Board of Directors or any other person authorized by it, shall have the right to enter any unit for the purpose of remedying or abating the causes of such emergency and making any other necessary repairs not performed by the unit owners, and such right of entry shall be immediate.
G.
All easements and rights described herein are easements appurtenant, running with the land, and shall inure to the benefit of and be binding on the undersigned, their successors and assigns, and any other
easements and rights described herein are easements appurtenant, running with the land, and shall inure to the benefit of and be binding on the undersigned, their successors and assigns, and any other owner, purchaser, mortgagee and other person having an interest in said land, or any part or portion thereof, regardless of whether or not reference to said easement is made in the respective deeds of conveyance, or in any mortgage or trust deed or other evidence of obligation, to the easements and rights described in this Declaration.
11. PARTITIONING. The common area and facilities shall remain undivided, and no unit owner or any other person shall have the right to bring any action to partition any part thereof, unless the property has been removed from the provisions of the Act. Nothing herein contained, however, shall be deemed to prevent ownership of a dwelling unit by the entireties, jointly, or in common, or in any other form permitted by law.
12. COMMON EXPENSES, COMMON PROFITS. The unit owners are bound to contribute pro rata, in the percentages computed according to Chapter 47C of North Carolina General Statute which percentages are set forth in Exhibit "C" hereto attached, toward the expenses of administration and of maintenance and repair of the general and limited common areas and facilities, and toward any other expenses lawfully assessed by the Association. No unit owner may exempt himself from contributing toward such expense by waiver of the use or enjoyment of the common area and facilities or by the abandonment of the unit belonging to him.
The COMMOD profits of the property, if any, after payment of all expenses of operation and maintenance of the property and the establishment of a sinking fund or other reserve funds or any other
him.
The COMMOD profits of the property, if any, after payment of all expenses of operation and maintenance of the property and the establishment of a sinking fund or other reserve funds or any other matters reasonably necessary and appropriate for the ■aintenance of the property as. determined by the Board of Directors in accordance with the Condominium Documents, shall be distributed among the unit owners according to the percentages for each unit set forth in Exhibit "C".
13. TAXES. If there is any unit owner other than a Declarant, each condominium unit and its percentages of undivided interest in the common areas and facilities set forth in Exhibit "C" hereto attached, shall be deemed to be a separate parcel and shall be separately assessed and taxed for all types of taxes authorized by law, including but not limited to, ad valore levies and special assessments. Bach unit holder shall be liable solely for the amount of taxes against his individual unit and shall not be affected by the consequence resulting from the tax delinquency of any other unit holders. Neither the building, the property, nor any of the common areas and facilities shall be deemed to be a separate parcel for purposes of taxation.
14. LIENS.
A. With the exception of liens which may result from the initial construction of this condominium, no liens of any nature may be created subsequent to the recording of this Declaration against the condominium property as a whole (as distinguished from an individual unit, together with its undivided common interest in the common areas and facilities) except with the unanimous consent of the unit owners and the holders, if any, of prior liens thereon.
B. No labor performed or materials furnished to the common areas and BOOK PAGE 1383 0208 all
ties) except with the unanimous consent of the unit owners and the holders, if any, of prior liens thereon.
B. No labor performed or materials furnished to the common areas and BOOK PAGE 1383 0208 all facilities shall be the basis for a lien thereon unless authorized by the Condominium Documents or expressly authorized by the Board, in which event, same might be the basis for the filing of a lien against condominium units in the proportions for which the owners thereof liable for common expenses.
are C. Unless otherwise provided by law, in the event a lien against one or поге condominium units becomes effective, each owner thereof relieve his condominium may unit of the lien by paying the proportionate amount attributable to his condominium unit. Upon such payment, it shall be the duty of the lienor to release the lien of record for condominium unit.
such D. Assessments against unit owners by the Association made pursuant to the By-Laws shall, if not paid when due, bear interest at such rate as is determined by the Board, not to exceed the maximum rate allowed by law, and shall create a lien to the extent of such assessment, together with interest thereon, in favor of the Association against the unit of defaulting owner and shall be enforced the as provided by the North Carolina Condominium Act.
8.
any To the extent permitted by law, all liens provided for herein shall be subordinate, and are hereby subordinated, to the lien of first mortgage given to any lender to secure a loan, the proceeds of which are used to finance the purchase of any unit or units, unless any such lien provided for herein shall have been recorded in the Office of the Clerk of Superior Court of New Hanover County prior to the recordation of said first lien
e of any unit or units, unless any such lien provided for herein shall have been recorded in the Office of the Clerk of Superior Court of New Hanover County prior to the recordation of said first lien mortgage in the Office of the Register of Deeds of New Hanover County , North Carolina.
15. NATURE OF INTEREST IN UNIT.
A.
Every unit together with its undivided common interest in the common areas and facilities, shall for all purposes be a separate parcel of real property , and the unit owner thereof shall be entitled to the exclusive ownership and possession of such unit subject only to the Documents and the covenants, restrictions, easements, regulations, resolutions and decisions adopted pursuant thereto.
Condominium B.
The owner shall be entitled to use the common areas and facilities in accordance with the purpose for which they are intended, but no such use shall hinder or encroach upon the lawful rights of the owners of other units.
16. INSURANCE.
A.
Amount and Scope of Insurance. All insurance policies upon the property (except personal property within a unit and limited common areas and facilities) shall be secured by the Board or by the Managing Agent, if so designated by the Board, who shall have the authority to, and shall, obtain such insurance against (1) loss or damage by fire or other hazards normally insured against, and (2) such other risks, including public liability insurance, as from time to time shall be customarily required by private institutional Mortgage Investors for projects similar in construction, location and for such amounts as the responsible authority shall determine. However, such liability coverage shall be for at least $100.000.00 for bodily injury, including deaths of persons and property damage arising out of a
nts as the responsible authority shall determine. However, such liability coverage shall be for at least $100.000.00 for bodily injury, including deaths of persons and property damage arising out of a single occurrence. Coverage under this policy shall include, without limitation, legal liability of the insured for property damage, bodily injuries and deaths of persons in connection with the operation, maintenance or use of the common areas and legal liability arising out of law suits related to employment contracts of the Owners Association . The foregoing shall not preclude the Board from insurance coverage obtaining on all or a portion of the limited common areas and facilities. In obtaining such coverage the responsible authority consider the reasonable requirements of holders of first liens од shall BOOK PAGE individual units.
B.
efforts 1383 0209 Insurance Provisions. The Board of Directors shall make diligent to ensure that said insurance policies provide for the following: (1) A waiver of subrogation by the insurer against the Association, any officer, director, agent or employee of the as to any claims Association, the unit owners and their employees, agents, tenants and invitees.
(2) A waiver by the insurer reconstruct instead of paying cash.
of its right to repair and (3) Coverage may not be cancelled (including cancellation for nonpayment of premium) without at least thirty or substantially modified days' prior written notice to the named insured and all mortgagees.
(4) unit owners Coverage will not be prejudiced by act or neglect of the when said act or neglect is not within the control of the Association or by any failure of the warranty Association or condition regarding any portion of the property over which the to comply with any Association
t or neglect is not within the control of the Association or by any failure of the warranty Association or condition regarding any portion of the property over which the to comply with any Association has no control.
(5) The master policy on the invalidated or suspended individual unit owners.
cancelled, property cannot be on account of the conduct of any one or (6) The master policy on or more or invalidated the property cannot suspended be cancelled, on account of the employee of the Board of Directors without prior demand in writing that conduct of any officer the Board of Directors cure the defect and the allowance of a reasonable time thereafter within which the defect may be cured by the Association, any unit owner or any mortgagee .
(7) Each unit owner shall be an insured person under the policy with respect to liability arising out of elements his interest in or membership in the Association.
the common (8) If, at the time of a loss under the policy, there is other insurance in the name of a unit owner covering the same risk covered by policy, the Association's policy shall provide primary insurance the coverage.
C. Premiums. All insurance premiums on benefit of the Association purchased by the Board the property and for the and any deductibles payable by the Association upon loss shall be a common or the Managing Agent expense.
D.
Proceeds. All insurance policies purchased pursuant to provisions shall provide that all proceeds thereof shall be payable to the these Board as insurance trustee or to such attorney-at-law or institution with trust powers as may be approved by the Board of Directors. The sole duty of the insurance trustee shall be to receive such proceeds as are paid and to hold the запе in trust for the purposes elsewhere stated stated in the By-
proved by the Board of Directors. The sole duty of the insurance trustee shall be to receive such proceeds as are paid and to hold the запе in trust for the purposes elsewhere stated stated in the ByLaws and for the benefit of the unit owners and their herein or mortgagors, as their interests may appear.
Any portion of the condominium for which insurance is required which is damaged or destroyed shall be repaired or replaced promptly by the Association unless they condominium is terminated, would be illegal, or the unit owners decide not to rebuild by an eighty repair or replacement percent (80%) vote, including one hundred percent (100%) approval of owners of units not to be rebuilt or owners assigned to limited areas or improvements not to be rebuilt. Proceeds of insurance shall be disbursed first for the repair or restoration of the damaged property and unit holders and lienholders are not entitled to receive payment of any portion of the proceeds unless there is a surplus of proceeds after the common BOOK PAGE 1383 0210 property has been completely repaired or restored. The cost of repair or replacement in excess of insurance proceeds and reserves is a common expense.
If the entire condominium is not repaired or replaced, the insurance proceeds attributable to the damaged common elements shall be used to restore the damaged area to a condition compatible with the remainder of the condominium, and/or the insurance proceeds attributable to units and limited common elements which are not rebuilt shall be distributed to the owners of those units and the owners of the units to which those limited common elements were allocated or to their lienholders, as their interests may appear, and/or the remainder of the proceeds shall be distributed to
s and the owners of the units to which those limited common elements were allocated or to their lienholders, as their interests may appear, and/or the remainder of the proceeds shall be distributed to all the unit owners or lienholders, 83 their interests may appear, in proportion to their common element interest. If the unit owners vote not to rebuild any unit, that unit's undivided interest reallocated as if the unit had been condemned, and the Association shall promptly prepare, execute and record an amendment to the Declaration reflecting the reallocations.
is automatically In the event a mortgagee endorsement has been issued with respect to a unit, the share of the unit owner shall be held in trust for the mortgagee and the unit owner as their respective interests may appear.
E. Policies.
All insurance policies purchased by the Board of Directors shall be with a company or companies licensed to do business in the State of North Carolina and holding a rating of "AAA" or better by the current issue of Best's Insurance Reports. All insurance policies shall be written for the benefit of the Board of Directors and the unit owners and their mortgagees as their respective interests пау appear, and shall provide that all proceeds thereof shall be payable to the Board of Directors as insurance trustee. The originals of all such policies and the endorsements thereto shall be deposited with the Board of Directors and duplicates of said policies and endorsements and all renewals thereof, or certificates thereof, together with proof of payment or premiums, shall be delivered to the unit owners at least ten days prior to the expiration date with respect to the then current policies. Duplicates shall also be obtained and issue by the Association to each mortgagee, if any, upon
the unit owners at least ten days prior to the expiration date with respect to the then current policies. Duplicates shall also be obtained and issue by the Association to each mortgagee, if any, upon request of such mortgagee at any time.
17. DAMAGE AND DESTRUCTION. Except as hereinafter provided, damage to or destruction of the common areas and facilities, and to the extent insurance proceeds are available, limited common areas and facilities, shall be promptly repaired and restored by the Board using the proceeds of any insurance available for those purposes, and the unit owners of all units shall be liable for assessment of any deficiency, in accordance with their undivided interests in the common areas and facilities; provided, however, if поге than eighty percent (80%) of the owners of the condominium project units and one hundred percent (100%) of the units not to be rebuilt resolve not to proceed with reconstruction or restoration, then in that event, the property shall be either (a) sold or otherwise transferred as hereinafter provided, or (b) deemed to be owned as tenants-in-common by the unit owners, and subject to the provisions of Section 47C-2-118 of the Act as the same exists at the date hereof or as amended hereafter. Any reconstruction or repair shall substantially in accordance with the plans and specifications of the original building and improvements, unless other plans and specifications are approved by the Board and by eligible holders holding mortgages on units which have at least 51% of the votes of units subject to eligible holder mortgages.
18. EMINENT DOMAIN.
A. If a unit is acquired by eminent domain, or if part of a unit is acquired by eminent domain leaving the unit owner with a remnant which may
subject to eligible holder mortgages.
18. EMINENT DOMAIN.
A. If a unit is acquired by eminent domain, or if part of a unit is acquired by eminent domain leaving the unit owner with a remnant which may not practically or lawfully be used for any purpose permitted by the Declaration, the award must compensate the unit owner for his unit and its interest in the common elements, whether or not any common elements are acquired. Unless the condemnor acquires the right to use the unit's BOOK PAGE 1383 0211 interests are in common elements, reallocated undivided the interest that unit's automatically to the remaining respective undivided interests of those units before the taking exclusive units in proportion to of the unit taken, and the Association shall promptly and record an amendment to the Declaration reflecting the reallocations.
Any remnant of a unit remaining after part of a unit is taken under this subsection is thereafter common area.
unless or not the any common decree otherwise elements are prepare, execute, B. Except as provided in subsection acquired by eminent domain, the award must compensate the unit owner for (A), if part of a unit is the reduction in value of the unit and of its interest elements, whether in the common acquisition, acquired. Upon undivided interests are reduced in proportion to the reduction in the size provides, (1) that unit's of the unit, or on any other basis specified in the Declaration, and (2) the portion of the undivided interests acquired unit is automatically reallocated to that unit and the remaining divested from the partially units in proportion to the respective undivided interests of those units before the taking, with the partially acquired unit participating in the reallocation on the basis of its reduced
the partially units in proportion to the respective undivided interests of those units before the taking, with the partially acquired unit participating in the reallocation on the basis of its reduced undivided interests.
C. If part of the common area portion of the award not payable to unit owners under subsection (A) must is acquired by eminent domain, the be paid to the Association. Unless the Declaration provides otherwise, any portion of the award attributable to the acquisition common area must be apportioned among the owners of a limited that limited common area was allocated at the time of acquisition.
of the units to which D. The court decree shall be recorded in every county in which any portion of the condominium is located.
19. RIGHTS OF ELIGIBLE MORTGAGE HOLDERS. To the extent permitted by law, an eligible mortgage holder upon written Association, identifying the request to the Homeowners даве and entitled to timely written notice of: address of the holder, will be A. Any condemnation, loss or casualty loss which affects a material portion of the project or any units on which there is held by such eligible mortgage holder.
a first mortgage B. Any delinquency in payment of assessments or charges owned by an owner of the unit subject to a holder, which remains uncured for a period of sixty days.
first mortgage held, by such eligible C. Any lapse, cancellation, or insurance policy Association.
or fidelity bond material modification maintained by the Homeowners of any require the consent of a D. Any proposed action which would specified percentage of eligible mortgage holders.
B.
the following In addition to the foregoing holders rights, the shall be afforded eligible Bortgage permitted by law and as allowed by the North Carolina Condominium Statutes
gible mortgage holders.
B.
the following In addition to the foregoing holders rights, the shall be afforded eligible Bortgage permitted by law and as allowed by the North Carolina Condominium Statutes rights subject to the extent as they now exist or as they may be amended from time to time.
(1) Any election to terminate the legal status after substantial destruction of the project or a substantial taking in condemnation of the project property must require the approval of at least 51% of the votes of the unit estates subject to eligible mortgage holders.
(2) Unless otherwise provided in the Declaration reallocation of interest in or By-Laws, no the common areas condemnation or partial destruction of the project may be effected without resulting from a partial the prior approval of eligible holders holding mortgages on all remaining unit estates whether existing in whole or in part, and which have at least .BOOK PAGE 1383 0212 51% of the votes of such remaining unit estates subject to holders of mortgages.
eligible at (3) If a professional management is ever used to govern the condominium, any decisions to establish self management by the Association shall require the prior consent of owners of unit estates to which least 67% of the votes of the Owners Association are allocated and the approval of eligible holders holding mortgages on unit estates which have at least 51% of the votes of the unit estates subject to eligible holder mortgages.
20. UNITS SUBJECT ΤΟ CONDOMINIUM DOCUMENTS. All present and future owners, tenants and occupants of units and their guests or invitees, shall be subject to, and shall comply with the provisions of the Condominium Documents, and as the Condominium Documents may be amended from time to time.
upants of units and their guests or invitees, shall be subject to, and shall comply with the provisions of the Condominium Documents, and as the Condominium Documents may be amended from time to time.
The acceptance of a deed of conveyance or the entering into of a lease or the entering into occupancy of any dwelling unit shall constitute an agreement that the provisions of the Condominium Documents are accepted and ratified by such owner, tenant or occupant, and all of such provisions shall be deemed and taken to be covenants running with the land and shall bind any person having at any time any interest or estate in such unit as though such provisions were made a part of each and every deed of conveyance or lease. Failure to comply with the provisions of the Condominium Documents shall entitle the Association or any other owner to seek legal and/or equitable relief, including costs and reasonable attorney's fees incurred in enforcing such compliance.
21. AMENDMENT OF DECLARATION. This Declaration may be amended by vote of not less than 67% in common interest of all unit owners, cast at a meeting duly held in accordance with the provisions of the By-Laws. No such amendment shall be effective until recorded in the Office of the Register of Deeds for New Hanover County wherein the property is located. The By-Laws may be amended in accordance with the procedure set forth in such ByLaws.
No amendment shall be allowed which acts to the detriment of the Declarant or any right reserved to Declarant by this Declaration, or any concomitant document drawn in connection with this condominium project, without the express written approval of the Declarant.
Notwithstanding anything in this section 21, Declarant retains the right to amend
ant document drawn in connection with this condominium project, without the express written approval of the Declarant.
Notwithstanding anything in this section 21, Declarant retains the right to amend this Declaration for a period of two years from date, providing Declarant still owns a unit in the condominium project.
22. TERMINATION. Except as provided in Paragraph 17 above, this Declaration may be terminated, and the condominium property removed from the provisions of the North Carolina Condominium Act, only by an instrument meeting the requirements of NCGS 47C-2-118 and executed by all of the unit owners and duly recorded, which said instrument shall provide either that the condominium regime is to be sold following termination or is not to be sold following termination. If the condominium is to be sold upon termination, title to the real estate in the condominium vests in the Association upon termination. If the condominium is not to be sold upon termination, title to all the real estate of the condominium vests in the unit owners as tenants in Common in proportion to their respective interests as herein provided. While the tenancy in common exists, and during the period between termination and sale of the condominium project, each unit owner and his successors and assigns have an exclusive right to occupancy of the portion of the real estate that formerly constituted his unit.
Following the termination of the condominium, the proceeds of any sale of real estate, together with the assets of the Association, are held by the Association as trustee for unit owners and holders of liens on the units as their interests may appear. Following termination, creditors of the Association holding lions on the units, which were recorded before BOOK PAGE termination, lienholder.
lders of liens on the units as their interests may appear. Following termination, creditors of the Association holding lions on the units, which were recorded before BOOK PAGE termination, lienholder.
1383 0213 as any may enforce those liens in the same manner All other creditors of the Association are to be treated if they had perfected liens on the units immediately before termination.
The respective interests of unit owners referred to are as follows: as A. Except as provided in paragraph (2), the interests of unit owners are the fair market value of their units, limited respective common elements, and common element interests immediately before the termination, as determined by one or more independent appraisers selected by the Association. The decision of the independent appraisers shall be distributed to the unit owners and becomes final unless disapproved within 30 days after distribution by unit owners of units to which twenty-five percent (25%) of the votes in the Association are allocated.
proportion of any unit owner's interest to that of all unit owners is determined by dividing the fair market value of that unit owner's unit and common element interest by the total fair market values of all the units and common elements B.
The prior to If any unit or any limited Common element is destroyed to the extent that an appraisal of the fair market value thereof destruction cannot be made, the interests of all unit owners are their respective common element interests inmediately before the termination.
In the event it is determined in the manner provided in Paragraph 17 hereof that the property shall not be repaired or reconstructed after fire or other casualty, the condominium will be terminated and the Condominium
s determined in the manner provided in Paragraph 17 hereof that the property shall not be repaired or reconstructed after fire or other casualty, the condominium will be terminated and the Condominium Documents revoked. The determination not to repair or reconstruct after fire or other casualty shall be evidenced by a certificate of the Association providing that all liens affecting all of the units are transferred to the percentage of undivided interest of the unit owners as set forth herein above, and certifying as to facts effecting the termination, which certificate shall become effective upon being duly recorded in the New Hanover County Register of Deeds.
as 23. HOMEOWNERS ASSOCIATION. It is the intention of Declarant that all rights of the Association shall be vested in a nonprofit Association known COLUMBIA TERRACE HOMEOWNERS ASSOCIATION, which shall be or has been, formed, pursuant to the laws of the State of North Carolina and the applicable Federal laws. Such association shall be formed and operated in accordance with this Declaration and the By-Laws attached hereto as Exhibit "E", and incorporated herein, and all governing laws, as they shall be amended from time to time.
The homeowner membership list will be comprised of those persons or entities owning units in COLUMBIA TERRACE. The annual meeting of members shall be held at Wrightsville Beach, North Carolina, upon the earlier of the following events: 120 days after seventy-five percent (75%) of the units have been conveyed to unit purchasers; or five (5) years following conveyance of the first unit in the project; two years after Declarant ceases to sell units or offer units for sale in the ordinary course of business; two years after any development rights to expand the condominium
e first unit in the project; two years after Declarant ceases to sell units or offer units for sale in the ordinary course of business; two years after any development rights to expand the condominium project expire; or upon notice by Declarant to unit owners. The first directors and officers will hold office until the initial annual meeting occurs, and new directors and officers are elected.
24. INVALIDITY. The invalidity of any provision of this Declaration shall not impair or affect the validity and enforceability of the remainder of this Declaration, and in such event, all of the other provisions of this Declaration shall continue in full force and effect as if such invalid provision had never been included.
25. WAIVER. No provisions contained in this Declaration shall be deemed to have been abrogated or waived by reason of any failure to enforce the same, irrespective of the number of violations or breaches which may occur.
.BOOK PAGE 1383 0214 units. Notwithstanding 26. PERPETUAL NONEXCLUSIVE BASEMENT IN COMMON AREAS.
facilities shall be, and the The common area and запе is hereby declared to be, subject to a perpetual nonexclusive easement in favor condominium units in the condominium for their use and of all of the owners of immediate families , guests, the use of their and invitees, for purposes, and for the furnishings of services and facilities for which the all proper and normal same are reasonably intended , for the condominium enjoyment of said owners of article, COLUMBIA TERRACE HOMEOWNERS ASSOCIATION, herein identified, shall anything above provided in this have the exclusive right to establish the rules and regulations pursuant to which the owner of any condominium unit, his invitees, family, guests may be entitled to use the
hing above provided in this have the exclusive right to establish the rules and regulations pursuant to which the owner of any condominium unit, his invitees, family, guests may be entitled to use the including the right to make permanent and temporary assignments of parking СОВОД areas and facilities , spaces, and to establish rules and regulations concerning the use thereof.
27. LAW CONTROLLING. This Declaration and the By-Laws attached hereto shall be construed under and controlled by the laws of the State of North Carolina.
and owner of such manufacturer or utility systems in 28. WARRANTIES. Declarant acknowledges that all contractual warranties set forth in the building's construction equipment in the unit, shall accrue to the benefit of the contract, of material and unit, along with all warranties, if any, provided by the supplier of appliances, air conditioners, heating and the unit. THE CLOSING OF TITLE OR OCCUPANCY OF THE UNIT SHALL CONSTITUTE AN ACKNOWLEDGMENT BY THE UNIT OWNER THAT DECLARANT MAKES NO OTHER IMPLIED OR EXPRESS WARRANTIES RELATING TO THE UNIT OR THE COMMON AREAS AND FACILITIES, EXCEPT FOR SUCH WARRANTIES AS ARE SET FORTH IN THE GENERAL WARRANTY DEED TO THE UNIT.
IN WITNESS WHEREOF, the Declarant has hereunto set his hand and seal in his capacity as Trustee, this the 10th day of July, 1986.
Morad Trustee (SEAL) Zames James Mothershed, Trustee STATE OF NORTH CAROLINA COUNTY OF Dew Haroon Witness my hand пе this day and I, a Notary Public of the County and State aforesaid, certify that James Mothershed, Trustee, personally appeared before acknowledged the execution of the foregoing instrument.
and official stamp or seal, this 10% day of July, 1987.
SHIRLEY NEW W.
MILLIS NOTARY PUBLIC HANOVER N. C.
COUNTY W.
Millin Notary Public
before acknowledged the execution of the foregoing instrument.
and official stamp or seal, this 10% day of July, 1987.
SHIRLEY NEW W.
MILLIS NOTARY PUBLIC HANOVER N. C.
COUNTY W.
Millin Notary Public My Commission Expires: 10/21/91 BOOK PAGE 1383 0215 The foregoing certificate (s) of Shirley W. Millis, a Notary Public is/ax certified to be correct. This instrument and this certificate are duly registered at the date and time in the Book and Page shown on the first page hereof.
REBECCA P. TUCKER, REGISTER OF DEEDS FOR NEW HANOVER COUNTY BY: Bands Braith Jr.
Deputy/Amikant-Register of Deeds